'Win-Win' Bill Reforms Rhode Island's Unemployment Rules

PROVIDENCE, RI — New rules for unemployment benefits, heralded as a "win-win" for Rhode Islanders and businesses, go into effect this weekend.

Gov. Dan McKee signed the fast-tracked legislation into law on Friday, surrounded by leaders of the small business community.

Under the new rules, Rhode Islanders collecting unemployment benefits can earn up to 150 percent of their weekly benefits before losing their eligibility, and can continue to collect the $300 weekly bonus from the federal coronavirus relief package as long as they are eligible to collect benefits.

McKee called the new law an "innovative approach to getting people back to work that will benefit both employees and employers."

"Our team worked closely with the Department of Labor and Training and our colleagues in the General Assembly to use the federal $300 per week boost to our advantage to incentivize people to go back to work, maximize families’ income, and help employers fully staff their businesses," McKee said. "Not only does the federal unemployment bonus provide much-needed support for Rhode Islanders who have been put out of work by the pandemic, these dollars flow right back into the state’s economy and to our small businesses. There is no single answer to this nationwide workforce challenge, but this bill will be part of the solution."

Along with raising the ceiling for benefit eligibility, the law also increases the amount a person can earn before their benefits are reduced from 20 percent to 50 percent.

Sen. Maryellen Goodwin, the Senate sponsor, said that it was essential to pass the legislation now, since Rhode Island businesses are struggling to find workers ahead of the busy summer tourist season.

"We need those industries to be ready for a resurgence as people are vaccinated and go back to traveling this summer," Goodwin said. "We shouldn’t say no to federal dollars that can also stimulate our state’s economy and help the partially employed make ends meet, but we also should ensure that it’s more rewarding to work than stay on unemployment."

Department of Labor and Training Director Matthew Weldon called the new rules "a win-win for both workers and businesses in Rhode Island."

"Unemployment benefits have provided an essential safety net for thousands of Rhode Islanders over the past year, and this bill will help them stay connected to the support system that unemployment provides while getting reconnected to the economy," Weldon said.

The DLT reported that the $300 weekly unemployment "bonus" brings more than $20 million to the state each week, helping to stimulate the economy and support Rhode Islanders in need.

The new changes go into effect on Sunday.